Import Duty Financing
Import duty financing is a financial solution that provides support to businesses or individuals involved in importing goods by covering the payment of import duties or customs duties imposed by the government. It is a form of trade financing that helps importers manage their cash flow and working capital by providing funds to cover the cost of duties.
When goods are imported into a country, the government imposes customs duties or import duties on those goods. These duties are calculated based on the value of the imported goods and are typically expressed as a percentage of the goods’ customs value. Import duties are intended to protect domestic industries, regulate trade, and generate revenue for the government.
Import duty financing allows importers to access funds to pay for the import duties upfront, rather than using their own working capital. This can be particularly helpful for businesses that face cash flow constraints or have large import volumes. By obtaining import duty financing, importers can ensure smooth customs clearance of their goods without incurring financial strain.
First Capital Ltd finances 100% of calculated duties and taxes as per KRA guidelines. The importer can clear the cargo immediately to avoid demurrages.
- Copy of KRA Pin.
- Copy of original National ID.
- 1 colored passport-sized photo.
- 3 months certified bank statement.
- Post-dated cheque leaves.
- Bill of landing.
- Inspection and export certificate.